[ET Net News Agency, 4 October 2018] HSBC Global Research lifted its target price for
Weichai Power (02338) to HK$13.7 from HK$13.3, and maintained its "buy" rating.
The research house expects China's common rail injection system industry to see a change
in market shares in the upcoming emission standard upgrade.
Weichai's management said the company has initiated the development of its own
electronic control unit (ECU). This unit accounts for 20% of the total cost of a common
rail injection system, which is a critical component of diesel engines.
HSBC estimated that the whole system accounts for 16-20% of the total cost of a
heavy-duty truck (HDT) engine.
Assuming Weichai substitutes 100% of its common rail system with its own longer term,
this could improve the gross profit margin for its engines by about 400bps, HSBC added.
(KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
02338 WEICHAI POWER
Nominal 
17.140 -0.060 (-0.349%) Others
04/10/2018 11:19
[I-bank focus]HSBC lifts Weichai Power (02338) to HK$13.7
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |